Real estate property division can be one of the most challenging aspects of any divorce. Texas is a community property state, meaning both parties typically have ownership of property acquired during the marriage. However, exceptions to that rule may apply when people have more substantial assets, including acquiring property from traceable separate assets.
Whether a family home, investment property, or commercial real estate, there are plenty of opportunities for real estate complications during a Frisco high-asset divorce. At Towson Law Firm, PLLC, we could help avoid unnecessary conflict by handling property disputes with professionalism and sensitivity.
Our seasoned high-asset divorce attorneys work closely with clients to ensure that they understand the nuances of Texas law. This ensures the protection of your rights and fosters a cooperative resolution.
The principle of community property applies to real estate as well as personal property. However, not all of a couple’s real estate is automatically community property.
Separate property includes all assets acquired before the marriage through gifts or inheritance. Determining whether a property is community or separate often involves tracing the source of funds used to purchase or maintain it.
Even if someone has separate property when they enter a marriage, actions during the marriage can convert it—or at least part of it—to community property. For example, if marital funds are used to pay for renovations, taxes, or mortgage payments, then part of the property may be community.
In high-asset divorces, couples may own a substantial amount of real property that may be maintained by community assets, complicating the division of those assets. A dedicated divorce attorney could explain the implications of certain actions regarding separate assets in more detail.
High-value properties sell less frequently than less expensive plots, making accurate valuation more difficult. If land is conveyed with mineral rights, an accurate appraisal has to include the value of those rights, including whether they are in production, the expected lifespan of production, and more.
In complicated high-asset divorces in Frisco, factors like location, condition, and potential income may be considered when valuing real estate. Multiple types of real estate may be involved, including primary residences, investment properties, vacation homes, commercial real estate, and ranches or farms. A professional lawyer could help their client with the process of valuing real estate during a divorce.
Many people believe that community property means equal division. While there may be a presumption of dividing equally, this is not the legal standard. Instead, the court needs to make a just and right division.
For example, if one of the parties uses property to earn a living, such as a rancher, they may get an unequal portion. The court will look at the length of the marriage, each spouse’s relative earning capacity, who will have primary physical custody of the children, and whether either party has fault in the divorce.
Courts have several options when dividing assets. They can force a sale of the property, award it to one spouse, or even have the couples retain co-ownership. In some cases, co-ownership agreements may be necessary if the couple’s income depends on the property. Still, it is one of the significant real estate complications that high-asset couples in Frisco can face when divorcing.
Real estate is unique, and property complications during a Frisco high-asset divorce are not uncommon. At Towson Law Firm, we help clients explore various options to find solutions that work for their unique circumstances.
Our experienced family law attorneys aim to facilitate a fair division that minimizes disruption and allows both parties to move forward. Contact us to schedule a consultation and learn more.
Our Law Firm’s approach to your case is based on individual circumstances. Whether it is a simple negotiated settlement, or it requires an aggressive approach, we will protect and defend your best interests.
